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Last Updated: April 2, 2026, 3:24 am
Author: Getaka|Social: XLinkedIn
Stock Ticker - BSE: 540900 | NSE: NEWGEN

Newgen Software Technologies Ltd: Intrinsic Value & Share Price Analysis

Fair Value

₹373.43Overvalued by 13.56%vs CMP ₹432.00

P/E (20.0) × ROE (22.4%) × BV (₹103.00) × DY (1.16%)

₹262.20Overvalued by 39.31%vs CMP ₹432.00
MoS: -64.8% (Negative)Confidence: 63/100 (Moderate)Models: 1 Fair, 8 Over
ModelCategoryValueWeightSignal
PE-ROEEarnings₹419.6722%Fair (-2.9%)
Graham NumberEarnings₹215.1316%Over (-50.2%)
Earnings PowerEarnings₹134.4811%Over (-68.9%)
DCFCash Flow₹360.4913%Over (-16.6%)
Net Asset ValueAssets₹103.557%Over (-76%)
EV/EBITDAEnterprise₹264.059%Over (-38.9%)
Earnings YieldEarnings₹199.707%Over (-53.8%)
ROCE CapitalReturns₹234.369%Over (-45.8%)
Revenue MultipleRevenue₹95.195%Over (-78%)
Consensus (9 models)₹262.20100%Overvalued
Key Drivers: Wide model spread (₹95–₹420) — high uncertainty.

PE-ROE · Graham · EPV · DCF · NAV · EV/EBITDA · DDM · Earnings Yield · ROCE Capital · Revenue Multiple | CoE: 12% · Terminal: 4% · EPS CAGR: 12.4%

*Investments are subject to market risks

Investment Snapshot

68
Newgen Software Technologies Ltd scores 68/100 (Average)
Based on 5 dimensions: health, institutional flow, earnings quality, momentum, and peer comparison
Stock Health88/100 · Strong
ROCE 27.8% ExcellentROE 22.4% ExcellentD/E 0.00 Low debtInterest Coverage 0.0x RiskyProfitable 5/5 years Consistent
Smart Money45/100 · Moderate
FII holding down -2.02% (6mo) SellingDII holding up 0.55% MF buyingPromoter holding at 53.5% Stable
Earnings Quality50/100 · Moderate
OPM stable around 25% Steady
Quarterly Momentum50/100 · Moderate
Revenue (4Q): +7% YoY GrowingProfit (4Q): -3% YoY Declining
Industry Rank100/100 · Strong
P/E 20.0 vs industry 44.0 Cheaper than peersROCE 27.8% vs industry 20.6% Above peersROE 22.4% vs industry 18.6% Above peers3Y sales CAGR: 24% High growth

Weights: Health 30% · Earnings Quality 25% · Momentum 20% · Industry Rank 15% · Smart Money 10%. Scores are computed from reported financials and recalculated daily. Not investment advice.

Newgen Software Technologies Ltd Investor Signals

Computed from valuation, cash flow, balance sheet, ownership and quarterly trend data already available in this stock page.

Value Trap Score
30/100
Low
Derived from: Cheapness + weak quality + weak cash support
Current data: P/E 20.0 vs Ind 44.0 | ROCE 27.8% | ROE 22.4% | CFO/NP N/A
Balance Sheet Stress
0/100
Comfortable
Derived from: Leverage + debt servicing + liquidity + debt trend
Current data: D/E 0.00x | IntCov 0.0x | Current 3.06x | Borrow/Reserve 0.03x
Cash Flow Reliability
29/100
Weak
Derived from: Cash backing of earnings + working capital pressure
Current data: CFO ₹0 Cr | NP ₹293 Cr | CFO/NP N/A
Ownership Accumulation
-25
Neutral
Derived from: FII + DII + promoter direction, adjusted by crowding
Current data: FII -0.28 pp | DII +0.10 pp | Prom -0.24 pp
Business Momentum
-32
Watch closely
Derived from: Latest quarter sales + profit + OPM change
Current data: Q Sales -3.0% | Q NP -27.3% | Q OPM +1.0 pp
Derived FieldValueHow it is derived
Valuation Gap %-39.3%((Fair Value - CMP) / CMP) × 100
Borrowings / Reserves0.03xLatest borrowings divided by latest reserves
CFO / Net ProfitN/ALatest operating cash flow divided by latest net profit
FII Change-0.28 ppLatest FII% minus previous FII%
DII Change+0.10 ppLatest DII% minus previous DII%
Promoter Change-0.24 ppLatest promoter% minus previous promoter%
Shareholder Count Change-1,855Latest shareholder count minus previous count
Quarterly Sales Change-3.0%Latest quarter sales vs previous quarter sales
Quarterly Profit Change-27.3%Latest quarter net profit vs previous quarter net profit
Quarterly OPM Change+1.0 ppLatest quarter OPM minus previous quarter OPM

Share Price and Basic Stock Data

Last Updated: April 2, 2026, 3:24 am

Market Cap 6,145 Cr.
Current Price 432
Intrinsic Value₹262.20
High / Low 1,379/401
Stock P/E20.0
Book Value 103
Dividend Yield1.16 %
ROCE27.8 %
ROE22.4 %
Face Value 10.0
PEG Ratio1.62

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Newgen Software Technologies Ltd

Competitors

Stock Name ⇩Market Cap ⇩Current Price ⇩High / Low ⇩Stock P/E ⇩Book Value ⇩Dividend Yield ⇩ROCE ⇩ROE ⇩Face Value ⇩
Newgen Software Technologies Ltd 6,145 Cr. 432 1,379/40120.0 1031.16 %27.8 %22.4 % 10.0
Sonata Software Ltd 6,190 Cr. 221 464/20713.4 63.21.99 %29.1 %27.3 % 1.00
Datamatics Global Services Ltd 4,096 Cr. 693 1,120/52218.8 2460.72 %15.0 %12.5 % 5.00
Moschip Technologies Ltd 3,198 Cr. 165 288/12577.8 19.10.00 %11.9 %11.2 % 2.00
Nucleus Software Exports Ltd 2,040 Cr. 775 1,378/71212.6 3221.61 %22.6 %16.8 % 10.0
Industry Average93,414.06 Cr648.3343.95156.220.97%20.61%18.63%7.00

All Competitor Stocks of Newgen Software Technologies Ltd

Quarterly Result

MetricDec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Sales 235283224264299350283331346394281366355
Expenses 179191196212227232242255244266245269256
Operating Profit 56922852721184176103128369899
OPM % 24%32%12%20%24%34%15%23%30%33%13%27%28%
Other Income 97128111422196133510-18
Interest 1111111111112
Depreciation 6666677788888
Profit before tax 5992325376124558799132619871
Tax % 22%16%15%18%14%18%23%24%16%23%20%22%20%
Net Profit 4677274465101426684101497756
EPS in Rs 3.275.511.943.124.667.223.024.705.977.153.445.413.97

Last Updated: February 4, 2026, 8:16 pm

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: February 25, 2026, 5:02 am

MetricMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025TTM
Sales 2342793133834605525776107118881,1361,3541,396
Expenses 1922262743183654334844315296908671,0061,035
Operating Profit 425338659411994180181198269349361
OPM % 18%19%12%17%21%22%16%29%26%22%24%26%26%
Other Income 1393882021143033466041
Interest 12355811534456
Depreciation 34456618191523263133
Profit before tax 515534639112586170193204284373363
Tax % 17%22%17%24%22%23%23%31%19%18%17%21%
Net Profit 42432848719666118156168237293283
EPS in Rs 23.873.962.563.735.106.884.718.4011.1412.0016.9220.7119.97
Dividend Payout % 10%15%29%20%19%21%21%21%20%21%24%24%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-20232023-20242024-2025
YoY Net Profit Growth (%)2.38%-34.88%71.43%47.92%35.21%-31.25%78.79%32.20%7.69%41.07%23.63%
Change in YoY Net Profit Growth (%)0.00%-37.26%106.31%-23.51%-12.71%-66.46%110.04%-46.58%-24.51%33.38%-17.44%

Newgen Software Technologies Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2014-2015 to 2024-2025.

Growth

Compounded Sales Growth
10 Years:17%
5 Years:19%
3 Years:24%
TTM:13%
Compounded Profit Growth
10 Years:21%
5 Years:34%
3 Years:23%
TTM:19%
Stock Price CAGR
10 Years:%
5 Years:55%
3 Years:67%
1 Year:-17%
Return on Equity
10 Years:21%
5 Years:22%
3 Years:22%
Last Year:22%

Last Updated: September 5, 2025, 11:40 am

Balance Sheet

Last Updated: December 4, 2025, 1:43 am

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Sep 2025
Equity Capital 8535362686869697070140140141
Reserves 1671481651853324164585646998531,0081,2731,332
Borrowings 415569686368108162339424844
Other Liabilities 49629298125157171194215259324380327
Total Liabilities 2653183794145877098068431,0081,2211,5131,8411,844
Fixed Assets 192256616868127200206240241253238
CWIP 35611178391000301
Investments 6367525859619097120155394539617
Other Assets 1812242652844444974985466818268761,049988
Total Assets 2653183794145877098068431,0081,2211,5131,8411,844

Reserves and Borrowings Chart

Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Cash from Operating Activity + 11113357897821513793264176
Cash from Investing Activity + -9-6-5-18-85-108-143-82-58-216-115
Cash from Financing Activity + -5-0-2168-5-45-101-30-42-45-66
Net Cash Flow -457107-2-76-2925-73-5
Free Cash Flow 1-112638173420312577250153
CFO/OP 45%71%76%82%95%115%136%99%66%117%68%

Free Cash Flow

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Free Cash Flow1.00-2.00-31.00-3.0031.0051.00-14.00164.00158.00159.00227.00301.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025
Debtor Days 2102272271771621571511059712810197
Inventory Days
Days Payable
Cash Conversion Cycle 2102272271771621571511059712810197
Working Capital Days 92111105798573596671906890
ROCE %27%24%14%21%25%26%16%27%27%24%27%28%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthMar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Jun 2025Sep 2025Dec 2025
Promoters 55.16%55.16%55.16%55.07%55.01%54.30%54.30%54.30%53.78%53.78%53.76%53.52%
FIIs 13.99%15.34%15.92%15.22%16.41%17.85%19.97%20.31%19.36%19.14%17.62%17.34%
DIIs 8.18%8.22%9.23%9.73%9.71%9.96%8.93%9.10%9.13%9.46%9.58%9.68%
Public 22.25%20.90%19.37%19.54%18.53%17.59%16.52%16.06%16.72%16.77%18.33%18.39%
Others 0.43%0.38%0.31%0.43%0.37%0.30%0.26%0.25%1.00%0.85%0.70%1.07%
No. of Shareholders 94,78687,57989,18199,3061,13,5941,11,1351,12,5421,26,4101,49,2971,47,4521,65,7721,63,917

Shareholding Pattern Chart

No. of Shareholders

Newgen Software Technologies Ltd: Intrinsic Value & Share Price Analysis - Shareholder trend analysis

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Tata Digital India Fund 1,546,917 0.75 90.031,541,2022025-12-07 00:48:410.37%
UTI Small Cap Fund 1,018,342 1.3 59.27767,6562026-02-23 01:39:2332.66%
JM Flexicap Fund 696,302 0.79 40.52899,8862026-02-23 01:39:23-22.62%
Quant Small Cap Fund 503,579 0.11 29.31N/AN/AN/A
UTI Innovation Fund 328,260 2.54 19.1289,3402026-02-23 01:39:2313.45%
Quant Teck Fund 326,453 7.11 19N/AN/AN/A
WhiteOak Capital Flexi Cap Fund 226,531 0.18 13.18N/AN/AN/A
WhiteOak Capital Digital Bharat Fund 111,487 1.47 6.49N/AN/AN/A
JM Small Cap Fund 105,754 0.98 6.15N/AN/AN/A
WhiteOak Capital Mid Cap Fund 98,673 0.13 5.74N/AN/AN/A

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 25Mar 24Mar 23Mar 22Mar 21
FaceValue 10.0010.0010.0010.0010.00
Basic EPS (Rs.) 22.5318.0225.3223.6518.28
Diluted EPS (Rs.) 21.8917.5025.0023.5018.10
Cash EPS (Rs.) 24.8420.0028.8526.1521.16
Book Value[Excl.RevalReserv]/Share (Rs.) 108.1587.53140.23116.6896.05
Book Value[Incl.RevalReserv]/Share (Rs.) 108.1587.53140.23116.6896.05
Revenue From Operations / Share (Rs.) 106.0488.98139.83112.0297.05
PBDIT / Share (Rs.) 31.3624.0635.3432.2929.86
PBIT / Share (Rs.) 29.0122.0631.8029.7626.95
PBT / Share (Rs.) 28.6721.7631.1929.2626.14
Net Profit / Share (Rs.) 22.4818.0025.3123.6118.25
NP After MI And SOA / Share (Rs.) 22.4818.0025.3123.6118.25
PBDIT Margin (%) 29.5727.0425.2728.8330.76
PBIT Margin (%) 27.3524.7922.7426.5627.77
PBT Margin (%) 27.0324.4522.3026.1126.93
Net Profit Margin (%) 21.2020.2218.0921.0818.80
NP After MI And SOA Margin (%) 21.2020.2218.0921.0818.80
Return on Networth / Equity (%) 20.7820.5618.0420.2318.99
Return on Capital Employeed (%) 25.2123.5921.1823.8326.37
Return On Assets (%) 15.4114.9113.1314.8313.73
Long Term Debt / Equity (X) 0.000.000.000.010.00
Total Debt / Equity (X) 0.000.000.000.010.00
Asset Turnover Ratio (%) 0.790.820.760.730.71
Current Ratio (X) 3.813.442.793.133.06
Quick Ratio (X) 3.813.442.793.133.06
Dividend Payout Ratio (NP) (%) 17.8013.9017.8514.9111.06
Dividend Payout Ratio (CP) (%) 16.1112.5115.6613.469.54
Earning Retention Ratio (%) 82.2086.1082.1585.0988.94
Cash Earning Retention Ratio (%) 83.8987.4984.3486.5490.46
Interest Coverage Ratio (X) 92.1680.4457.9264.3236.78
Interest Coverage Ratio (Post Tax) (X) 67.0661.1742.4648.0323.48
Enterprise Value (Cr.) 13532.8910732.422934.572969.441721.34
EV / Net Operating Revenue (X) 9.108.633.013.812.56
EV / EBITDA (X) 30.7731.9111.9213.228.32
MarketCap / Net Operating Revenue (X) 9.388.933.224.162.92
Retention Ratios (%) 82.1986.0982.1485.0888.93
Price / BV (X) 9.209.083.213.992.95
Price / Net Operating Revenue (X) 9.388.933.224.162.92
EarningsYield 0.020.020.050.050.06

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

About the Company - Qualitative Analysis

Newgen Software Technologies Ltd. is a Public Limited Listed company incorporated on 05/06/1992 and has its registered office in the State of Delhi, India. Company's Corporate Identification Number(CIN) is L72200DL1992PLC049074 and registration number is 049074. Currently Company is involved in the business activities of Computer programming, consultancy and related activities. Company's Total Operating Revenue is Rs. 1354.35 Cr. and Equity Capital is Rs. 140.21 Cr. for the Year ended 31/03/2025.
INDUSTRYADDRESSCONTACT
IT Consulting & SoftwareE-44/13, Okhla Phase 2, New Delhi Delhi 110020Contact not found
Management
NamePosition Held
Mr. Diwakar NigamChairman & Managing Director
Mr. T S VaradarajanWhole Time Director
Ms. Priyadarshini NigamWhole Time Director
Mr. Subramaniam Ramnath IyerIndependent Director
Ms. Padmaja KrishnanIndependent Director
Mr. Sudhir SethiIndependent Director
Mr. Saurabh SrivastavaIndependent Director

FAQ

What is the intrinsic value of Newgen Software Technologies Ltd and is it undervalued?

As of 05 April 2026, Newgen Software Technologies Ltd's intrinsic value is ₹262.20, which is 39.31% lower than the current market price of ₹432.00, suggesting the stock is overvalued. This is calculated using the PE ratio method factoring in ROE (22.4 %), book value (₹103), dividend yield (1.16 %), and 5-year EPS CAGR.

What is the current share price and 52-week range of Newgen Software Technologies Ltd?

Newgen Software Technologies Ltd is trading at ₹432.00 as of 05 April 2026, with a FY2026-2027 high of ₹1,379 and low of ₹401. The stock is currently near its 52-week low. Market cap stands at ₹6,145 Cr..

How does Newgen Software Technologies Ltd's P/E ratio compare to its industry?

Newgen Software Technologies Ltd has a P/E ratio of 20.0, which is below the industry average of 43.95. Trading at a steep discount to peers could signal a value opportunity or reflect concerns about the company's fundamentals.

Is Newgen Software Technologies Ltd financially healthy?

Key indicators for Newgen Software Technologies Ltd: ROCE of 27.8 % indicates efficient capital utilization; ROE of 22.4 % shows strong shareholder returns. Dividend yield is 1.16 %.

Is Newgen Software Technologies Ltd profitable and how is the profit trend?

Newgen Software Technologies Ltd reported a net profit of ₹293 Cr in Mar 2025 on revenue of ₹1,354 Cr. Compared to ₹156 Cr in Mar 2022, the net profit shows an improving trend.

Does Newgen Software Technologies Ltd pay dividends?

Newgen Software Technologies Ltd has a dividend yield of 1.16 % at the current price of ₹432.00. The company pays dividends, though the yield is modest.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Newgen Software Technologies Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE
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